A friend who works for the internal marketing department at a large international corporation recently asked me, “Why do clients choose to work with outside agencies like yours?” As someone who has spent his entire career as a creative on the agency side, I at first took offense. But my pragmatic sensibility quickly took over and after a short pause, I said, “Lots of agencies sell themselves on creative talent and brilliant ideas that may never have a chance to germinate in a corporate setting … but I think it’s often a matter of economics and urgency. By using an external agency, a company like yours can quickly ramp up to get an important campaign out the door without hiring a bunch of people.”
We were out for a day of skiing, so I wasn’t in the mood to elaborate and talk shop. Looking back, I quickly realized that this was a woefully incomplete answer. Below is a more thoughtful approach to this question, beginning with an expansion on my original, very practical reason for choosing to work with an agency.
- Scalability/Cost Efficiency
Marketing needs frequently fluctuate with seasonal trends, product launches, and market conditions such as new competition. Agencies offer the flexibility to quickly react when the need arises. Companies can scale marketing efforts based on fluctuating needs without the hassle and expense of hiring additional full-time staff. The combined cost of salaries, benefits, training, and overhead for an in-house team is a substantial investment and scaling back and letting people go is painful.
Of course, this point is not meant to diminish the value of securing a long-term contract or retainer with an agency. My 30+ years in the business can verify that efficiency and execution reach new heights when there’s a close and ongoing relationship between agencies and clients.
- Fresh Perspectives
There’s a reason internal marketing departments often hire people from the independent agency world. We bring experience from a broad spectrum of clients and an unbiased view of the business and its market. This unique perspective is often the secret sauce in developing ideas that will stand out from the competition. Also, agencies are known for nurturing talent by hiring interns, exposing them to a myriad of clients and high-pressure deadlines, and then hiring the best (i.e. those who survive and want to come back).
- Specialized Expertise
Agencies can add specialists to your team who bring a wealth of experience. This can include experience in a niche market such as insurance or high-tech, or unique skills such as project management, SEO, social media optimization, video production, web development, etc.
- Advanced Tools and Technologies
Marketing agencies need to invest in the latest technologies to stay ahead of industry trends. These valuable resources can include advanced analytics platforms, automation software, and design tools that may be too costly or complex for a single company to maintain.
- Keeping Internal Teams Focused on Core Business Needs
Many of our agency’s clients outsource specific campaigns or marketing functions to us while their in-house team stays focused on core business activities and strategic initiatives. In some cases, I’ve seen internal teams focus on serving current customers while the agency is seen as more of an acquisition specialist. It’s an incredibly smart and straightforward division of labor that delivers better outcomes.
- Passion for Results
Branding agencies aside, most marketing agencies are results-driven and pride themselves on setting and beating specific goals. We provide detailed response reports and analytics that allow companies to make informed decisions. This level of accountability drives continuous improvement and better return on investment (ROI).
If I had worked in agency sales, this list would go on until your eyes rolled into the back of your head. But as I mentioned earlier, my experience comes from the creative side. All the above reasons for choosing to work with an agency like Direct Choice come from my decades of personal experience and not a sales deck. I hope you find some value in that.